Canada International Trade (July 2026)

The sharp narrowing of the goods trade surplus in July was not only a price effect from lower energy and metal prices, as export volumes fell too, implying that net trade was a drag on GDP at the start of the third quarter. The headwinds will only grow in the coming months, as the new US 50% tariffs on various goods will likely cause them to slump this month, albeit after a potentially short-lived tariff-front running boost in August.